A judge in Denver has granted DMA’s request for a temporary injunction against a law that would require online retailers to collect state sales tax.
“Denver District Court Judge Morris Hoffman’s ruling on the Direct Marketing Association’s request for preliminary injunction prevents the state from enforcing a law that imposes extensive reporting requirements on retailers that don’t charge Colorado customers the state’s 2.9 percent sales tax. The ruling was issued late Tuesday.
The DMA, a trade organization that represents thousands of businesses, has argued that the law is unconstitutional and places an unfair burden on out-of-state e-tailers. To secure the preliminary injunction, the DMA had to show, among other things, that it has a “reasonable probability of success” in efforts to throw out the law and its business members would suffer irreparable harm if the request were to be denied.”
“DMA is pleased the District Court has granted its motion for a preliminary injunction and suspended enforcement of all elements of the Colorado tax notice and reporting law,” said Christopher Oswald, DMA’s VP, state affairs. “We agree with Judge Hoffman’s finding that the law’s notification and reporting requirements are facially discriminatory. Two courts have now ruled in the DMA’s favor on the merits, and we trust that our arguments that the Colorado law violates the Commerce Clause of the U.S. Constitution will ultimately prevail.”
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